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Overview

[China Co-Financing Fund] IDB administers 3 million USD loan to Durli Group subsidiaries in Paraguay for construction of a leather plant (linked to Record ID#85133)

Commitments (Constant USD, 2023)$3,018,889
Commitment Year2018Country of ActivityParaguayDirect Recipient Country of IncorporationParaguaySectorIndustry, Mining, ConstructionFlow TypeLoan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Mar 6, 2018

Geospatial footprint

Map overview

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This project involves the construction of a leather plant in Paraguarí, Paraguay, at coordinates 21 J 478715 UTM 7154970. More detailed locational information can be found at https://www.openstreetmap.org/node/4337615367.

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

Government Agencies

  • People's Bank of China (PBC)

Cofinancing agencies

Intergovernmental Organizations

  • IDB Invest (formerly Inter-American Investment Corporation or IIC)

Receiving agencies

Private Sector

  • Durli Leather S.A.
  • Veneza Inversiones PY. S.A.

Implementing agencies

Intergovernmental Organizations

  • China Co-Financing Fund for Latin America and the Caribbean (CHC)
  • IDB Invest (formerly Inter-American Investment Corporation or IIC)

Loan description

[China Co-Financing Fund] IDB administers 3 million USD loan to Durli Group subsidiaries in Paraguay for construction of a leather plant

Interest typeUnknown

Narrative

Full Description

Project narrative

On March 6, 2018, IDB Invest (the private sector institution of the Inter-American Development Bank (IDB) Group, formerly Inter-American Investment Corporation, or IIC), signed a loan package with the Durli Group operation in Paraguay, which is made up of Durli Leather SA and Veneza Inversiones SA. This loan package consisted of a 3 million USD loan from the China Co-Financing Fund for Latin America and the Caribbean (CHC), a 6 million USD loan from IDB Invest's own resources, and a 6 million USD loan from unspecified additional project partners. The terms of the loan are unknown, though IDB Invest describes it as a "long-term loan." The IDB approval date for this loan financing was December 11, 2017, and it refers to this project with code 12100-03 and name "Durli Brazil." More specifically, the loan will be used by the borrowers for the construction of a leather treatment plant in Paraguarí, Paraguay, as well as partially financing working capital needs and refinancing liabilities. A precise timeline of the plant's construction is unknown, but it appears environmental reviews were taking place in 2016, and the plant was completed and in operation by the end of 2018 at the latest. Starting in 2019, the plant fell under scrutiny for environmental contamination of Lake Ypoá and Caañabé Creek. The Durli Group (Durlicouros Indústria e Comércio de Couros, Exportação e Importação Ltda.) is a Brazil-based leather manufacturer. However, Durli Leather SA is a Paraguayan company. The IDB also arranged financing to Durli Group's organization in Brazil, captured in the linked Record ID#85133. The China Co-Financing Fund was established on 14 January 2013 with a contribution of 2 billion USD by the People's Bank of China, and it is administered by the IDB. For more information, see umbrella Record ID#86526